In this answer I proved that non-degenerate circles in $\mathbb{R}^2$ are mapped by the inverse of the stereographic projection to non-degenerate circles on the unit sphere that do not pass through the northern pole. I will now prove that lines in $\mathbb{R}^2$ are mapped by the inverse of the stereographic projection to non-degenerate circles on the unit sphere that do pass through the northern pole.
(I) Preliminaries
I will use the following notations (most of which are copied from the above-mentioned answer of mine).
Assumption
Let $a$, $b$, and $c$ be real numbers such that $a^2 + b^2 \neq 0$.
Definitions
$\Sigma$ is defined to be the unit sphere in the Euclidean space, i.e.
$$
\Sigma := \big\{(x,y,z)\in\mathbb{R}^3 : x^2+y^2+z^2 = 1\big\}.
$$
$N$ is defined to be the northern pole of the unit sphere, i.e. $N := (0,0,1)$.
$S$ is defined to be the stereographic projection, i.e. the function $S:\Sigma\setminus\{N\}\rightarrow\mathbb{R}^2$ satisfying
$$
S\big((x,y,z)\big) = \Big(\frac{x}{1-z},\frac{y}{1-z}\Big)
$$
for every $(x,y,z) \in \Sigma\setminus\{N\}$.
$R$ is defined to be the function $R:\mathbb{R}^2\rightarrow\mathbb{R}^3$ satisfying
$$
R\big((x,y)\big) = \Big(\frac{2x}{x^2+y^2+1}, \frac{2y}{x^2+y^2+1}, \frac{x^2+y^2-1}{x^2+y^2+1}\Big)
$$
for every $(x,y) \in \mathbb{R}^2$.
$\operatorname{Id}_\Sigma$ and $\operatorname{Id}_{\mathbb{R}^2}$ are defined to be the identity functions on $\Sigma$ and on $\mathbb{R}^2$, respectively. (We will only really need $\operatorname{Id}_\Sigma$.)
We define $L$ to be the line $\big\{(x,y) \in \mathbb{R}^2 : ax + by = c\big\}$.
Fact
As I did in the above mentioned answer, I take the following fact for granted, without proving it:
- $S$ and $R$ are inverses, i.e. (a) $R\circ S = \operatorname{Id}_\Sigma$, and (b) $\operatorname{Img} R \subseteq \Sigma\setminus\{N\}$ and $S\circ R = \operatorname{Id}_{\mathbb{R}^2}$. Note that (b) implies, in particular, that $R$ is injective. (The proof will only use the facts that $R\circ S = \operatorname{Id}_\Sigma$, that $\operatorname{Img} R \subseteq \Sigma\setminus\{N\}$, and that $R$ is injective.)
(II) A formal statement of the problem
There is a plane $\Pi \subseteq \mathbb{R}^3$ which passes through $N$ and whose distance from the origin is strictly less than $1$, such that $R[L] = (\Sigma\cap\Pi)\setminus\{N\}$.
(III) Proof
From Analytic Geometry, a plane $\Pi \subseteq \mathbb{R}^3$ is any set satisfying $\Pi = \big\{(x,y,z) \in \mathbb{R}^3 : Ax + By + Cz + D = 0\big\}$ for some $A, B, C, D \in \mathbb{R}$ such that $A^2 + B^2 + C^2 \neq 0$.
Define
$$
\begin{align*}
A &:= \frac{a}{2},\\
B &:= \frac{b}{2},
\end{align*}
$$
and define $C$ and $D$ to be the unique real numbers satisfying
$$
\begin{align*}
C + D &= 0\\
C - D &= c.
\end{align*}\tag{*}
$$
(Linear Algebra tells us that this system of equations has a unique solution $\begin{bmatrix}C\\D\end{bmatrix} \in \mathbb{R}_{2\times1}$, because the matrix of coefficients $\begin{bmatrix}1 & 1\\1 & -1\end{bmatrix}$ is invertible.)
Define $\Pi := \big\{(x,y,z) \in \mathbb{R}^3 : Ax + By + Cz + D = 0\big\}$.
Note:
$A^2 + B^2 + C^2 \neq 0$, since otherwise we would have $a = b = 0$, in contradiction to the assumption that $a^2 + b^2 \neq 0$. Hence, by the first paragraph of this proof, $\Pi$ is a plane in $\mathbb{R}^3$.
$N \in \Pi$, as can be readily verified from the definition of $\Pi$, using $(*)$.
I claim that in order to show that $\Pi$'s distance from the origin is strictly less than $1$, it suffices to show that $R[L] = (\Sigma\cap\Pi)\setminus\{N\}$. Indeed, if $R[L] = (\Sigma\cap\Pi)\setminus\{N\}$, then in particular $R[L] \subseteq \Sigma\cap\Pi$, hence the fact that $R$ is injective implies that the set $\Sigma\cap\Pi$ includes at least two points, and therefore $\Pi$ passes through $\Sigma$'s interior, which implies, by $\Sigma$'s definition, that $\Pi$'s distance from the origin is strictly less than $1$.
It remains to show that $R[L] = (\Sigma\cap\Pi)\setminus\{N\}$. We will do so by showing that $R[L] \subseteq (\Sigma\cap\Pi)\setminus\{N\}$ and that $(\Sigma\cap\Pi)\setminus\{N\} \subseteq R[L]$.
Firstly we show that $R[L] \subseteq (\Sigma\cap\Pi)\setminus\{N\}$. By the fact that $\operatorname{Img} R \subseteq \Sigma\setminus\{N\}$ it suffices to show that $R[L] \subseteq \Pi$. Let $(x,y) \in L$. Then, by the definitions of $R$ and of $\Pi$ it suffices to show that
$$
A\frac{2x}{x^2+y^2+1} + B\frac{2y}{x^2+y^2+1} + C\frac{x^2+y^2-1}{x^2+y^2+1} + D = 0,
$$
which, by algebraic manipulations, can be shown to be equivalent to
$$
2Ax + 2By + (C+D)(x^2+y^2) = C-D,
$$
which, by the definitions of $A$, $B$, $C$, and $D$, reduces to
$$
ax + by = c.
$$
Since, by selection, $(x,y) \in L$, the last equation holds by the definition of $L$.
Secondly we show that $(\Sigma\cap\Pi)\setminus\{N\} \subseteq R[L]$. Let $p \in (\Sigma\cap\Pi)\setminus\{N\}$. Then, in particular, $p \in \mathbb{R}^3$, and we can denote its coordinates by $x$, $y$, and $z$, respectively, so that $p = (x,y,z)$. Note that since, by selection, $p \in (\Sigma\cap\Pi)\setminus\{N\}$, we have $p \in \Sigma\setminus\{N\}$. It follows from the definition of $S$ that $p \in \operatorname{dom} S$, and we can therefore define $q := S(p)$. By the fact that $R\circ S = \operatorname{Id}_\Sigma$, it follows that $p = R\big(S(p)\big) = R(q)$. Therefore, it suffices to show that $q \in L$, i.e., by the definition of $q$, that $S\big((x,y,z)\big) \in L$, i.e., by the definitions of $S$ and of $L$, that
$$
a\frac{x}{1-z} + b\frac{y}{1-z} = c,
$$
which, by algebraic manipulations can be shown to be equivalent to
$$
ax + by = c(1-z).\tag{**}
$$
(Since, as we saw above, $p \in \Sigma\setminus\{N\}$, it follows that $z \neq 1$.)
By algebraic manipulations and by using the definitions of $A$, $B$, $C$, and $D$, $(**)$ can be shown to be equivalent to
$$
2(Ax + By + Cz + D) = (C + D)(1 + z).\tag{***}
$$
Since, by $p$'s selection, $(x,y,z) \in \Pi$, it follows from the definition of $\Pi$ that $(*\!*\!*)$ reduces to $0 = (C+D)(1+z)$. The last equation is valid by $(*)$. Q.E.D.
Related posts
In this answer I proved that non-degenerate circles in $\mathbb{R}^2$ are mapped by the inverse of the stereographic projection to non-degenerate circles on the unit sphere that do not pass through the northern pole.
In this answer I clarified a step in a proof from this paper. That paper shows that non-degenerate circles on the unit sphere are mapped by the stereographic projection to either lines or to non-degenerate circles in $\mathbb{R}^2$, depending on whether the original circle passes or no through the northern pole, respectively.